Receipt of Recommendation from the Fair Trade Commission Pursuant to Article 8, Paragraphs 1 and 2 of the Act on Proper Transactions with Specified Contractors

Today, we received a recommendation (hereinafter "this Recommendation") from the Japan Fair Trade Commission based on the provisions of Article 8, Paragraphs 1 and 2 of the Act on Proper Transactions with Specified Contractors (hereinafter "this Act").

We sincerely apologize for any inconvenience or concern this Recommendation may cause to the specified contractors involved and all other related parties.

We take this Recommendation seriously and will appropriately implement its contents to prevent similar occurrences in the future.

Summary of the Recommendation

1 To establish a system for complying with the Act, take the following measures:
(1) Confirm the following matters by resolution of the Board of Directors:

(a) Failing to immediately disclose the items specified in Article 3, Paragraph 1 of this Act to a specified contractor in writing or by electronic means upon outsourcing work to them constitutes a violation of said paragraph.
(b) When outsourcing work to a specified contractor in the future, immediately disclose the specified items to that contractor in writing or by electronic means.
(c) Failure to pay remuneration to a specified contractor by the payment deadline specified in Article 4, Paragraph 2 of this Act constitutes a violation of the provisions of Paragraph 5 of the same Article.
(d) When outsourcing work to a specified contractor in the future, remuneration shall be paid to said specified contractor by the payment deadline specified in Article 4, Paragraph 1 of this Act.

(2) Investigate whether any issues arose from transactions of the same or similar type outsourced to the specified contractor between November 1, 2024 (the effective date of this Act) and February 27, 2026, from the perspective of Article 3, Paragraph 1 and Article 4, Paragraph 5 of this Act. If issues are identified, take necessary measures to rectify the transactions.

(3) Regarding items (1)(a) and (d) above, take necessary measures to establish internal systems, such as providing training on this Act to officers and employees.

2 Thoroughly communicate the measures taken based on item 1 above to officers and employees

3 Notify the specified contractors of the measures taken based on items 1 and 2 above

4 Promptly report the measures taken based on items 1 through 3 above to the Fair Trade Commission